Ahead of the International Defense Exhibition and Conference (IDEX), Avascent published a White Paper by Aleksandar Jovovic, Alec Sorensen, and Nico Dona dalle Rose analyzing defense industrial opportunities in MENA. Looking at the current markets of the MENA region, the white paper concluded that the market shows that there are enormous long-term opportunities for local governments that view data-driven industrial policy as a viable lever to channel defense spending towards economic growth, maintaining interoperability with allies, and ensuring surety of supply. A shortened analysis was carried in Defense News, highlighting that the precipitous decline in global oil prices has brought forward an urgent emphasis on policies encouraging economic growth and economic diversification like the industrial participation programs on the rise in MENA.
In a separate summary of the predictions being made at IDEX, Defense News interviewed Aleksandar Jovovic, who noted that the trend of sales for support of existing equipment is likely to continue in the near term due to the ongoing conflict in Yemen, which represents the first real, protracted campaign Saudi Arabia and the UAE have had to be involved in. He added, “When you’re in a contingency situation like Yemen you need to re-route the money and focus on consumables – ordnance and material – that you don’t expand as much in peacetime because you’re mostly engaged in training.”
The UAE’s The National also spoke to Aleksandar Jovovic at IDEX about the multiple ongoing conflicts in the MENA region expected to keep the defense industry busy. He noted that MENA countries involved in conflicts are likely to prioritize spending on weapons, maintenance, repair and overhaul (MRO) of all systems and platforms, including aircraft, and land vehicles among others; as well as discussing the the critical challenge that Iran remains for the Gulf states.
Read Avascent’s white paper: Re-Envisioning Defense-Industrial Strategies: Opportunities in MENA.
Read the Defense News analysis: Rethinking defense investments for Middle East growth.
Read the Defense News piece on growth areas in Gulf nations: Underwater drones, border sensors are growth areas for Gulf nations.
Read the National’s piece on MENA defense spending: Idex 2017: Mena defence spending to rise this year as conflicts create demand for arms.